Quarterly Report for Quarter Ending December 31, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

The following should be read in conjunction with our Consolidated Financial Statements and the notes thereto included in the Financial Statements.

FORWARD LOOKING STATEMENTS:

Certain statements contained in this report, including statements concerning the Company's future and financing requirements, the Company's ability to obtain market acceptance of its products and the competitive market for sales of small production business and other statements contained herein regarding matters that are not historical facts, are forward looking statements; actual results may differ materially from those set forth in the forward looking statements, which statements involve risks and uncertainties, including without limitation to those risks and uncertainties set forth in any of the Company's Registration Statements and Annual reports on form 10K under the heading "Risk Factors" or any other such heading. In addition, historical performance of the Company should not be considered as an indicator for future performance, and as such, the future performance of the Company may differ significantly from historical performance.

REVENUES: Revenues from operations for the three-month period ending December 31, 2025 and December 31, 2024 were $11,724 and $13,256 respectively, and for the six-month period ending December 31, 2025 and December 31, 2024 were $23,505 and $24,141 respectively. The increases are attributable to lease revenues and currency fluctuations. The following table summarizes the Company's revenue allocations:

GENERAL AND ADMINISTRATIVE EXPENSES: G&A expenses for the three-month period ending December 31, 2025 and December 31, 2024 were $2,051 and $1,512 respectively, and for the six-month period ending December 31, 2025 and December 31, 2024 were $ 3,345 and $3,552 respectively. The expenses are mainly attributable to ANV's normal operations and the Company's SEC compliance.

PROFESSIONAL EXPENSES: Professional expenses for the three-month period ending December 31, 2025 and December 31, 2024 were $4,500 and $4,000 respectively, and for the six-month period ending December 31, 2025 and December 31, 2024 were $15,960 and $15,019 respectively. The expenses were attributable to audit fees for 2025 and 2024.

OTHER INCOME (EXPENSES): Other income (expenses) for the three-month period ending December 31, 2025 and December 31, 2024 were $0 and $352 respectively, and for the six-month period ending December 31, 2025 and December 31, 2024 were $0 and $352 respectively. The fluctuations are mainly attributable to tax benefits and interest expenses.

NET INCOME (LOSS): Net income attributed to common stockholders was $2,649 or $0.00 per basic and diluted share for the three-month period ending December 31, 2025 as compared to $5,152 or $0.00 per basic and diluted share for December 31, 2024. Net income (loss) attributed to common stockholders was $(796) or $0.00 per basic and diluted share for the six-month period ending December 31, 2025 as compared to $677 or $0.00 per basic and diluted share for December 31, 2024. The fluctuations are mainly attributable to lease revenues.

LIQUIDITY AND CAPITAL RESOURCES: At December 31, 2025 and June 30, 2025, the Company had cash and cash equivalents of $33,958 and $57,225 respectively. At December 31, 2025 and June 30, 2025, the Company had a working capital deficit of $(218,931) and $91,958 respectively. The change in cash is primarily due to AVN's payment of debt and normal operations. The increase in the working capital deficit is primarily related to the operations.

Net cash provided by operating activities for six-month period ending December 31, 2025 and December 31, 2024 was $25,058 and $15,369 respectively. The increase was primarily due to expenses paid on behalf of related party and taxes payable.

Net cash (used-in) financing activities for six-month period ending December 31, 2025 and December 31, 2024 was $(48,538) and $(45,080) respectively. Net cash used in financing activities for both periods is related to the company's borrowings from banks, officers and directors, and the repayment of debt.

OFF BALANCE SHEET ARRANGEMENTS:

We do not currently have any off-balance sheet arrangements.

ACQUISITION EFFORTS:

The Company continues its efforts to raise capital to support operations and growth and is actively searching acquisition or merger with another company that would complement AOXY or increase its earnings potential. During this period, the Company has been in discussion with Companies looking to be acquired. AOXY has not negotiated any terms nor proposed any acquisitions of any of these companies that have been accepted. In addition, the Company is in discussion with potential lending institutions to assist in financing any proposed acquisition. The Company expects difficulty in financing the growth of the increased business or acquisition and has been concentrating on raising capital and/or obtaining a line of credit.